DA Davidson maintains Buy on Paysign, reiterates $6 target

Published 26/03/2025, 15:20
DA Davidson maintains Buy on Paysign, reiterates $6 target

On Wednesday, Paysign Inc. (NASDAQ:PAYS) received continued support from DA Davidson, as the firm’s analyst Peter Heckmann reiterated a Buy rating alongside a steady price target of $6.00, representing significant upside from the current price of $2.35. This confirmation of confidence came in the wake of Paysign’s recent fourth-quarter earnings report, which slightly exceeded both DA Davidson’s and the consensus estimates. According to InvestingPro data, analyst consensus remains strongly bullish with targets ranging from $6.00 to $7.25.

Paysign’s performance in 2024 was marked by significant growth, boasting a 24% year-over-year increase in revenue, which was entirely organic, and an even more impressive 43% year-over-year rise in adjusted EBITDA. The company’s strong execution is reflected in its robust 27.75% revenue growth and solid financial health score of 2.89 (rated as GOOD) by InvestingPro. The company’s management team, encouraged by these results, has released their financial guidance for 2025. Notably, the lower end of their projected ranges for both revenue and adjusted EBITDA surpasses DA Davidson’s previous forecasts.

To discuss these outcomes and offer further insights into the company’s operations, Paysign’s management conducted a conference call on Wednesday afternoon. Analysts and investors were given the opportunity to hear additional commentary on the business’s trajectory and strategies moving forward.

DA Davidson’s analyst indicated plans to revise their forecasts for Paysign in response to the new information provided by the company’s management and the latest financial data. These updates to the firm’s projections are expected to be published within the coming days.

Paysign’s recent earnings report and the subsequent affirmation of a Buy rating by DA Davidson suggest a positive outlook for the company as it moves into the next fiscal year. Despite trading near its 52-week low after a 41% decline over the past six months, InvestingPro’s Fair Value analysis suggests the stock is currently undervalued. With the analyst’s forecasts pending an update, stakeholders in Paysign Inc. may have further details to consider in the near future regarding the company’s financial trajectory. Discover more insights about PAYS and other undervalued opportunities at Most Undervalued Stocks.

In other recent news, Paysign Inc. reported its fourth-quarter 2024 earnings, meeting expectations with an earnings per share (EPS) of $0.02 and slightly surpassing revenue forecasts with $15.61 million compared to the anticipated $15.45 million. The company experienced a 23.5% increase in full-year revenue to $58.4 million, driven by strong performance in its plasma and patient affordability segments. Paysign’s adjusted EBITDA for the year rose by 43.3%, indicating improved operational efficiency. The company’s strategic acquisition of Gamma Innovation LLC aims to strengthen its position in the SaaS market, particularly in plasma and pharmaceutical businesses. Analysts have noted Paysign’s continued growth trajectory, with the company projecting 2025 revenue between $68.5 million and $70 million. This represents an expected growth of 17.5% to 20% year-over-year. Additionally, Paysign plans to expand its plasma donor centers and continue its successful patient affordability programs. The acquisition of Gamma Innovation is seen as a key factor in enhancing Paysign’s market presence and capabilities.

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